Mobile Phones Review

“As various service providers have been given licences in different areas at different periods of time, the Authority feels that keeping the subscriber base as the criteria for deciding the priority of allotment shall be against the level playing field and the principle of equity,” TRAI Chairman Nripendra Misra said in a letter to Telecom Secretary Siddartha Behura.

He said that Department of Telecom (DoT) may consider the auction route for allotment of spectrum in the 800 MHz band (spectrum for CDMA players) with the highest bid received from GSM operators as the reserve price.

This would ensure equity, level playing field and optimal pricing in allotment of CDMA spectrum for 3G services, he added.

The subscriber base of CDMA network of the service provider in any service area is a result of different environment and cannot muster the “test of fairness if it was to become the basis of priority”, TRAI said.

The Indian government plans for 3G international auction, with a minimum price set at $472 million. As of end of June we have 250 million users of mobile phones.  Being the second-largest - whilst also the fastest growing - mobile phone market, the auction is expected to attract not only domestic, but especially international telecoms operators.

“Only two private operators alongside a state-owned firm would get licenses for Delhi and Mumbai, because of the shortage of spectrum”, said Andimuthu Raja, minister for communications and information technology.

The auction is to commence in a few months. With strong interest resulting in high bids the cost will most likely be passed on to the customer.